The Colorado Springs real estate market is hot, hot, hot! The market started to heat up this Spring, but now that Summer is here the real estate market is on fire.
Why? There are several contributing factors. With upward pressure on interest rates, buyers are taking advantage of the relatively low rates. The rate on a 30 year fixed loan is averaging about 4 – 4.25%. The time to buy is still good.
Another factor is: historically in Colorado the best time to move is during summer. This is supported by any graph, on any website that tracts buying trends. If you don’t believe me, ask any Realtor in the business.
Let me list some other market conditions that support a hot market for home buying:
1) According to the “Colorado Springs Real Estate market conditions” website, the available inventory in Colorado Springs is slightly higher than last year .This could translate to some pressure on Sellers to lower prices.
This is reflected by Trulia.com which shows the median home sales price has decreased by 3.7% year over year. With the slight decrease in sales prices and increase in inventory there are some good deals to be had. Buyers may have to turn over a few stones and kiss a few frogs to find that perfect house at the right price.
2) Foreclosures have actually increased 4% over the last several months, but when you look at the year over year decrease, the under market priced homes are starting to thin out. Nationwide, REO properties (bank owned foreclosed houses) are down by a significant amount.
3) Another contributing factor is: new homes are not being built at a fast enough pace to keep up with demand. The 2008 economic meltdown has caused the builders to be a little more cautious during this uptick in the housing market. In some instances this is dictated more by commercial lenders who tend to be more conservative.
4) The environment in Colorado Springs feeds the old law of supply and demand. Low inventory with high demand leads to lots of activity. This trend will cause prices to increase as supply dwindles. As fix and flippers, we are seeing our houses with double and triple the activity that we have seen over the past few years. We are also receiving fewer low ball offers on remodeled houses.
5) Overall on the front range of Colorado, which mainly includes Denver, Colorado Springs, and Pueblo, homes are selling with less days on market, with multiple full price offers. In some instances buyers are offering more than full price.
I’ve heard stories of buyers in the Denver market getting a call from the Realtor, immediately driving to the house, only to find out that there are already multiple offers on the property. Several of the offers are over full price.
Sellers, now is a great time to sell. Tons of buyers in the market. If you are a buyer, I suggest you get out there and sweat it out. It will be well worth your effort. Get out there today, and find that HOT deal before it cools down!